The NZ financial adviser population increased by more than 700 during the 12 months to June 30, according to the latest regulatory headcount.
Figures from the Financial Markets Authority (FMA) second set of regulatory disclosures for the sector show 9,184 advisers were linked to licensed firms as at the end of June this year compared to 8,472 on the same date in 2024.
By June 30 some 1,550 financial advice providers (FAPs) fell under the full-licencing regime that came into operation in March 2023.
From the start of the transitional licensing rules in March 2021 to the full regulatory launch two years later, FAP numbers dropped from 1,820 to 1,360 while the adviser population shrank to 8,838 from 10,750.
But the most recent data suggests any FAP teething issues and adviser attrition have eased as the industry has become accustomed to the new regulatory set-up.
Romil Ghelani, FMA financial advice head, says in a note that the “sector is continuing to embed the financial advice regulatory framework; firms are finding efficiencies, and the time, energy and cost of compliance is smoothing out and feeling like business as usual”.
The first cut of the latest FAP regulatory return statistics remain in line with the inaugural 2024 report that found life and health insurance as the most common advised products.
Digital-based FAP advice, however, saw a significant rise year-on-year, albeit from a low base.
“In 2025, 49 financial advice providers provided a digital advice service and 164,841 retail clients received digital advice across these providers (that resulted in them acquiring a financial product),” the FMA note says. “This is a 90% increase from last year.”
The regulator approved almost 60 FAP licences post June 30 in a period that also saw the FMA probe the sector according to its new ‘financial conduct’ agenda set out this June with 16 ‘monitoring engagements’.
As well as custodial arrangements, the formal regulatory visits looked for how clients understood “fees, incentives, and commissions” and treatment of customers in vulnerable circumstances (or when “things go wrong”).
From the beginning of July, the FMA also fielded 109 FAP-related enquiries (about half related to regulatory returns), 42 misconduct reports and stripped the licences of two advisory firms.